Background: Increasingly, financial institutions are looking at education as a tool that can help create and retain financially responsible cardholders, especially in the face of rising delinquencies. The following case study outlines one consumer education initiative that can serve as an effective model for card issuers.The issuer initiative, developed by Wells Fargo Card Services, called “Early Intervention Education,” targeted first-time credit cardholders enrolled in a post secondary university.
Methodology: The issuer sent a direct mail piece to a randomly selected group of 78,000 new credit cardholders enrolled in universities across their banking footprint. This mailing directed recipients to an Internet site containing two lessons and quizzes designed to increase awareness of the importance of building solid credit. The site is a smaller version of Visa USA’s award-winning financial literacy program: Practical Money Skills for Life and was created and maintained by Visa on behalf of the issuer.